Micron Technology (NYSE: MU) fell US$4.39 to $40.86 in morning trading Friday, after reporting a loss for the secondquarter ended March 1st.
However, Prudential Securities said it was maintaining a strong buy rating on Micron Technology shares.
Micron Technology, a Boise, Idaho maker of memory chips, reported a loss from continuingoperations of $4 million, or a penny per share, compared with income fromcontinuing operations of $359 million, or 59 cents. Sales dropped to $1.07billion from $1.57 billion.
Semiconductor division sales fell 33 percent from the first quarter becauseof a 50 percent drop in the average selling price of Micron Technology products, thecompany said.
Analysts at Prudential said that the results were better than the 10 cents per share loss from continuing operations they had expected.
“Whileinventory levels are still high, they have come down from the bloated levels of a month ago,” the analysts wrote in a research note.
Micron Technology had delayed reporting results for about a week as it wrapped upaccounting for its Micron Electronics (Nasdaq: MUEI) affiliate. MicronElectronics, majority-owned by Micron Technology, said last week it wouldacquire Web hosting company Interland (Nasdaq: ILND) and combine itwith its HostPro hosting operations.
Micron Electronics also said it would sell its personal computer businessand its SpecTek subsidiary to Micron Technology, as it moves to transformitself from a PC manufacturer to an “Internet-centric computing company.”Micron Technology will assume ownership of SpecTek on April 6th.
Micron Technology shares rose last week when the company said itssemiconductor operations would be “slightly profitable” in the quarter.
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